MSRB NOTICE 2005-35 (JUNE 13, 2005)

RTRS WEB ENHANCEMENTS AND NEW REPORTS IMPLEMENTED JUNE 14, 2005

On Tuesday June 14, 2005, the MSRB will implement enhancements to its Real-Time Transaction Reporting System (RTRS) Web interface.  The enhancements include changes to existing features, the addition of new features and the capability to generate three new reports.  An updated version of the RTRS Web User Manual Version 2.0 that includes these enhancements is available on the Transaction Reporting and Transparency section of the MSRB’s web site.

The RTRS Web enhancements will be described and instructions on their use provided at the RTRS Update and Review of Upcoming Enhancements Seminar on June 15 in Chicago, IL and June 21 in New York, NY.[1]  Dealers are encouraged to attend one of these two and one half hour seminars.  Individuals that have already registered will be contacted to confirm their registration. 

RTRS WEB ENHANCEMENTS

Numerous minor changes have been made to RTRS Web to improve navigation and make existing functions easier to use.  These include the renaming of several “buttons” to more accurately reflect the function they serve, for example renaming the buttons used to report a transaction from “save trade” to “submit trade.”  Other minor changes include more intuitive date range input on search screens and improved web navigation when a search results in multiple pages of transactions.

The enhancements to RTRS Web also include several additional search capabilities.  A new Error Code Review and Response screen will allow dealers to search for trades that received a specific error code or a type of error code, such as a “questionable” error code or an error code relating to dollar price or yield.  From this screen, trade data including error codes received can be exported into Microsoft Excel.  Several preformatted “shortcut” queries for executing searches about trades reported during the current day also have been added.  These queries include viewing late reported trades, trades that received an unsatisfactory error code or trades that were rejected.

REPORTS

Three new reports are included in the RTRS Web enhancements.  Dealers that have reports privileges in RTRS Web will be able to access the reports through the “reports” button on the menu bar of RTRS Web.  Complete instructions for accessing the reports and for adding reports privileges to an existing RTRS Web user can be found in the RTRS Web User Manual Version 2.0.

Discrepancy Error Code Report

The Discrepancy Error Code Report will provide dealers with information about a contra party’s submission for inter-dealer transactions that receive at least one of three error codes that result from the buy-side and sell-side submitting substantially different information.  The report is separated by each of these three questionable error codes: Q19F, accrued interest different on buyer and seller sides; Q22F, seller and buyer times of trade differ by more than 15 minutes; and, Q44F, contra party you indicated is not the contra party on the matching side.  The report will show the information relating to the discrepancy submitted by both dealers as well as additional information to identify the transaction including trade date, CUSIP number, XREF, TID and match TID.

As with any “questionable” error code received, dealers should review the information reported to the MSRB to ensure that the trade report accurately reflects the transaction as executed.  The information included in this report will assist dealers in researching why a particular error code was received so that corrections to erroneous information reported or discussions with a contra party to resolve discrepancies can be made, as appropriate. 

This report will be generated in real-time upon request by a dealer for a selected trade match date.  Reports of a current date will show trades matched and processed up to the time of the report request.  Dealers will be able to generate the report for any date beginning with trades matched on June 7, 2005.   

Destination Code Report

Dealers choosing to use National Securities Clearing Corporation’s (NSCC) automated comparison system (RTTM) to deliver securities between dealers that are not the result of purchase-sale transactions (“step out” deliveries) are required to indicate that the submissions are for RTTM Matching Only (destination indicator DEST 01) to ensure that the submission does not also constitute a trade report under Rule G-14 (an inter-dealer trade report would be submitted with destination indicator DEST 01/02).  Comparison submissions compare against each other in RTTM regardless of whether their destination indicators match.  When two dealers submit “mismatched” destination indicators and comparison occurs, the MSRB is unable to determine which dealer was correct as to whether the comparison represents a transaction or a step out.  However, it is clear in such a case that at least one of the dealers has violated Rule G-14, either by reporting a true inter-dealer trade as a step out or by reporting an inter-dealer transaction that did not occur. 

The Destination Code Report will show matched inter-dealer submissions with matching step out indicators (both parties submitting destination indicator DEST 01) and those with mismatched step out indicators (one dealer submitting destination indicator DEST 01 and the other submitting DEST 01/02).[2]  Dealers that are party to a mismatched destination code comparison submission should check with their contra party to see why there was disagreement as to how the comparison submission should have been coded and take steps to ensure that future transactions and deliveries between the two dealers are submitted with matching destination codes to RTTM.  

In addition to each dealer’s submitted destination indicator, the report will provide additional information to identify the transaction including trade date, CUSIP number, XREF, TID and match TID.  The report will be generated in real-time upon request by a dealer for a selected trade match date.  Reports of a current date will show trades matched and processed up to the time of the report request.  Dealers will be able to generate the report for any date beginning with trades matched on June 7, 2005.   

Report of Correspondents

Dealers that have an assigned submitter ID on file with the MSRB will be able to access this report that lists the company name and broker symbol of dealers that have indicated to the MSRB on Form RTRS that they have a clearing relationship with the requested submitter ID.  This report shows the current information on file with the MSRB at the time that the report is requested.

*                      *                      *

Questions about this notice may be directed to a Transaction Reporting Assistant.

June 13, 2005

---